Judge: Jill Feeney, Case: 21STCV30733, Date: 2023-01-20 Tentative Ruling
Case Number: 21STCV30733 Hearing Date: January 20, 2023 Dept: 30
Department 30, Spring Street Courthouse
January 20, 2023
21STCV30733
Petition to Approve Compromise of Pending Action of Ruben Soriano (Age 69) including Special Needs Trust
DECISION
This matter was continued to allow Petitioner to correct a number of items.
The petition will be granted pending the appearance of the Guardian Ad Litem at the hearing.
The Court will fill in a specific 14-month date for petitioner to file an accounting at attachment 13, paragraph 5. The date is March 21, 2024.
The Court will fill in a specific 60 day date at attachment 13, paragraph 18 as follows: the Court sets an OSC Re: Status of Filing of Noticed of Commencement of Proceedings for a Court Supervised Trust (LASC Pro 044) in Probate for March 24, 2023 at 8:30 a.m.
At the hearing, the Court will set an OSC Re: Dismissal.
Moving party to provide notice.
Discussion
The Court last continued this matter to allow Plaintiffs to disclose more information about the ongoing Medi-Cal lien reduction. Plaintiff’s counsel now testifies that the amended petition now includes the full lien amount and if, after the reduction process is complete, the outstanding funds will be transferred directly to Soriano’s special needs trust.
Plaintiffs also submitted medical reports as requested.
The Court previously continued this matter to allow counsel to submit a copy of the legal services agreement. The amended petition now includes the agreement.
The Court previously continued this matter to allow Petitioner to correct the following additional items.
1. Joinder Agreement: Petitioner must fill out a completed and unsigned copy of the Joinder Agreement. The “No” box must be checked and include the “heirs at law” beneficiary designation on p. 16 of the agreement.
Petitioner filled out the agreement as instructed.
2. Use of Annuity: Petitioner must submit a separate declaration explaining the reasons for the purchase of a 15-year annuity if Claimant has a life expectancy of four years and whether Claimant has special needs that could be paid in the short term if the settlement funds were not locked away in the longer-term annuity.
Petitioner must also submit a declaration discussing the issue of investment strategy. Petitioner requests authority for the trustee to have broader investment authority than the statutory baseline. However, Claimant’s age and life expectancy suggests that the trustee should take a more conservative investment strategy.
Plaintiff’s counsel submitted a declaration at page 51 of the file containing the MC-351. Counsel states the trustee of the pooled special needs trust has a toolbox of investments that are broadly used for all pooled special needs trust beneficiaries. If Soriano lives beyond the estimated life expectancy, the Trustee can take advantage of the expanded investment powers to obtain greater returns for Soriano. Pooling the funds also allows financial risk/gain to be spread across all beneficiaries and keeps fees low.
3. Court’s order:
a. Petitioner must change paragraph 4 of attachment 13 of the Court’s general orders because it is inappropriate for a state court order.
This paragraph was changed as instructed.
b. Petitioner must change paragraph 6 of attachment 13 of the order because the order need only state that petitioner is given authority to execute the joinder agreement.
This paragraph was changed as instructed.
c. A specific 14-month date for petitioner to file an accounting must be inserted at attachment 13, paragraph 5.
This was added as instructed. A blank has been left to be filled in.
d. The order should state that the civil court has set an OSC in its own department in 60 days to ensure that the probate case has been opened and that any required bond has been submitted.
This language was added as paragraph 18.
The Court makes the following findings.
1. The SNT beneficiary has a disability which substantially impairs the individual’s ability to provide for her own care or custody and constitutes a substantial handicap;
2. The SNT beneficiary is likely to have special needs that will not be met without the trust; and
3. The money to be paid to the trust does not exceed the amount that appears reasonably necessary to meet the SNT beneficiary’s special needs.
